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The BRC believes this has partly been driven by UK customers increasingly using cards for lower value payments.

The consortium also notes that cards have become the dominant payment method as retailers’ investment in payment technology has facilitated greater customer choice over how they pay for their goods both in-store and online.

Andrew Cregan, policy advisor at the BRC said, “A growing number of retailers have invested in payment technology to accept cards, contactless payments and new payment applications both online and in store. In part, this has been facilitated by the Interchange Fee Regulation (IFR), which was introduced across the European Union following a successful campaign by the BRC and has led to a significant fall in the cost of collection that benefits retailers and their customers.

“Looking ahead, the Government should act to retain the benefits of the IFR for retailers and their customers after the UK leaves the EU and introduce further regulatory action to address the alarming increase in other card fees and charges at a time when the retail industry is facing acute cost pressures elsewhere.”